Chapter 1Introduction to Quality Ms. Farwida Tariq
HistoryThe age of CraftsmanshipManufactures directly dealing with customersDevelopment of interchangeable component products - The Blanc’s musketsThe Early 20th CenturySeparation of planning from Execution (Frederick W. Taylor) Quality by inspection Quality departments SQC (Bell Telephone Laboratories- 1920)
Early History Post War II Shortage of goods- Quality not a priority SQC introduced in Japan by Juran and Deming - 20 years - Kaizen helps Japan beat West in Quality and penetrate in Western Markets
Early HistoryThe US Quality Revolution “If Japan can … Why Can’t We?” Government safety regulations Consumer Products Safety Commission Product-liability judgments
Early HistoryXEROX - Leadership Through Quality initiative (David Kearns). Defects per 1000 machines reduced by 78% Unscheduled maintenance decreased by 40% Manufacturing cost dropped by 20% Product development tine decreased by 60% Overall product quality improved by 93% Service response time improved by 27% Won Malcolm National Baldridge Award 1989 Strong growth in 1990’s !
ExcellenceFrom Product Quality to PerformanceExcellenceNASA: Excellence award for quality and productivity (1985)US Congress: Malcolm Baldrige National Quality Award (1987)President Reagan: Federal Quality Prototype Award (1988) Florida Power and Light won Deming Prize (1989) AT&T Won Deming Prize (1994)
Bad PracticesDisappointments and CriticismDouglas Aircraft Poor organizational approach Poor quality strategies Poor execution of good strategies Bad Management
QualityCurrent and Future Challenges 1. Partnering 2. Learning systems 3. Adaptability and speed of change 4. Environmental Stability 5. Globalization 6. Knowledge Focus 7. Customization and differentiation 8. Shifting Demographies “Quality is a race without a finish line” ….. David Kearns
Defining Quality Perfection Consistency Eliminating waste Speed of delivery Compliance with policies and procedure Providing a good, usable product Doing it right the first time Delighting or pleasing costumers Total customer service and satisfaction
Defining QualityProduct-Based PerspectiveFunction of some measurable variables No. of knots/sq in No. of dots/in No. of cylinders in an engine Mistakenly assumed to be related to price!
QualityUser-Based PerspectiveWhat a customer wants!Fitness for intended use. Service conditions, Environment etc.
Defining QualityValue-Based PerspectiveUsefulness or satisfaction Vs price(Value pricing)Better performance for comparable price - internet facilities What about purchases based on lowest quotations!
QualityIntegrating Perspectives on QualityDo designer, manufacturers, service provider,distributors and customer have same perspective?
QualityCostumer Driven Quality Quality is meeting or exceeding customer expectationsCustomers, Consumers and Suppliers Internal Customers External Customers “Our costumers are intelligent: they expect us continuously evolve to meet their ever-changing needs. They can’t afford to have a thousand mediocre suppliers in today’s competitive environment. They want a few exceptional ones” CEO Fujitsu
QualityTotal Quality Control- Total System approachTotal quality is a people-focused management system that aims atcontinual increase in costumer satisfaction at continual lower realcost.Horizontally and vertically integrated approach stressing learningand adaptation to continual change. Unyielding and continuallyimproving effort.
Total QualityPrinciples of Total Quality 1. Customer & stakeholder focus. 2. Everyones participation 3. Continual improvement and learning
Total QualityCustomer & Stakeholder FocusBeyond merely meeting specifications Delighting the customerExternal costumers are important Internal customers are equally importantKnowledge, skills, creativity are key to success. Motivation, recognition of employees.
Total QualityParticipation and teamworkEmpowerment Freedom and encouragement to make decisionsHorizontal coordinationInvolvement in solving systemic problems (Cross functional boundaries)
Total QualityProcess Focus and Continual Improvement1.Enhancing value through improved products2.Reducing defects, wastes etc.3.Increasing productivity and effectiveness4.Improving responsivenessImprovement depends on learning. 1. Planning 2. Execution 3. Assessment of progress 4. Revision of plans
QualityQuality and Competitive Advantage - Ability to achieve market superiorityCharacteristics 1. Customer need driven 2. Contributes to success of the business 3. Matches companies unique opportunities 4. Difficult to copy 5. Potential of further improvement 6. Provides direction and motivation to organization Product quality provides profitability due to larger market share and premium prices.